If a person has 1 year extensions from being married to a Thai, can they apply for a work permit not connected to a company? For example, a free lancer?

No, although there has been talk of that you must have an employer to get a WP. The WP only allows you to work for the named company, at the named location in the named function.

OP not true

Is there any other country in the world that has such a crazy law like this?

There are plenty of countries which have crazier laws than this

The logic is thus ......you are not a legal resident of Thailand even when married for most people, so understanding that, then this part of the rules then makes perfect sense

On the other spectrum, even people staying in the US illegally can work without repercussions thanks to the current administration. To me, the Thai way is much better for the country... just not so good for us (Non-O's).